Apple has lost its top spot in China's smartphone market, with Huawei taking the lead, according to Jefferies analysts. The Chinese smartphone market has seen positive growth, mainly driven by double-digit increases in Android device sales from companies like Huawei, Xiaomi, and Honor. In contrast, Apple's iPhone sales have experienced a double-digit decline, with negative year-on-year volume growth since the launch of the iPhone 15.
Jefferies analysts anticipate that this weakening demand in China will result in lower-than-expected global shipments of the iPhone 15 in 2023. This shift suggests that Huawei will overtake Apple in the Chinese market next year, a crucial region representing approximately 19% of Apple's overall sales.
The analysts also highlighted stable iPhone discounts, except for the iPhone 15 models, and noted that iPhone 15 devices are selling at discounts to their official prices due to subdued demand in China. Additionally, Morgan Stanley recently adjusted its Apple price target, citing supply challenges and a more cautious outlook for the December quarter. Apple's performance in China during this period will be closely monitored.